The six-week strike at General Motors impacted Navistar’s Springfield, Ohio truck assembly...

The six-week strike at General Motors impacted Navistar’s Springfield, Ohio truck assembly plant, causing the company to suspend the delivery of certain models, such as CV Series trucks that were co-developed with GM. 

Photo: Jack Roberts

Navistar Inc. has announced that the six-week strike of General Motors by the United Auto Workers affected its ability to deliver about 5,000 vehicles to customers, causing the company to lower fourth quarter revenue guidance.

The OEM estimates that lost production due to the strike is expected to impact the company’s revenue and adjusted EBITDA by approximately $140 million and $15 million, respectively.

"We are pleased that we have resumed production at our Springfield, Ohio, truck assembly plant last week," said Walter G. Borst, executive vice president and chief financial officer, Navistar. "However, the shutdown of our Springfield plant affected our workforce and the delivery of certain units to customers. As a result, our 2019 full year revenue and adjusted EBITDA is now expected to be at the low end of our guidance range."

The strike at GM affected the delivery of certain components to the Springfield plant because it caused production shutdowns at GM facilities and affiliated suppliers. Navistar said it was forced to halt production at Springfield on September 23, suspending production of GM-branded vehicles as well as Navistar’s own commercial trucks.

On November 4, Navistar resumed production at the plant. The company’s decision to halt production there impacted approximately 1,500 plant workers and the delivery of approximately 5,000 vehicles to customers. Affected vehicles included the cutaway model of GM's G Vans, Class 4-5 trucks, and other commercial vehicles.

In late 2018, Navistar and GM signed a long-term agreement to develop and assemble medium-duty, conventional cab Class 4-5 commercial vehicles. The two companies also have an agreement under which Navistar manufactures the cutaway model of GM's G Van.

Originally posted on Trucking Info

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